Freight Delivery Company RXO (NYSE: RXO) will be announcing earnings results this Friday before market hours. Here’s what to look for.
RXO met analysts’ revenue expectations last quarter, reporting revenues of $1.42 billion, up 36.6% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
Is RXO a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting RXO’s revenue to decline 11.2% year on year to $1.48 billion, a reversal from the 70.4% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.04 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. RXO has missed Wall Street’s revenue estimates six times over the last two years.
Looking at RXO’s peers in the ground transportation segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Old Dominion Freight Line’s revenues decreased 5.7% year on year, meeting analysts’ expectations, and Landstar reported a revenue decline of 2.9%, falling short of estimates by 1.4%. Landstar traded down 2.3% following the results.
Read our full analysis of Old Dominion Freight Line’s results here and Landstar’s results here.
There has been positive sentiment among investors in the ground transportation segment, with share prices up 8% on average over the last month. RXO is up 18.6% during the same time and is heading into earnings with an average analyst price target of $15.50 (compared to the current share price of $17.05).
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